Morgan Stanley Says Apple (AAPL) Preparing to Conquer Living Rooms

Apple Inc. (NASDAQ: AAPL) could be preparing a Smart TV prototype, as the company looks to increase its presence in the living room, according to one Wall Street analyst

Morgan Stanley's Katy Huberty said in a note to investors on Friday that "checks in Asia suggest Apple is working on a Smart TV prototype." The company is apparently looking to consolidate "TV/Video content, gaming, DVR, as well as other features like apps and FaceTime into one product."

Huberty said that this may be the next in Apple's line of you-never-knew-you-couldn't-live-without-it gadgets, adding that an "iTV" could bring approximately $4 billion in revenue to Apple per 1 percent share of the global TV market it gains by 2013.

The analyst also pointed to three other growth catalysts for Apple going forward including revenue growth in the Asia/Pacific region, expanded iPhone prices and continued dominance in the tablet market.

Recently analysts at Credit Suisse also commented on the potential of an iTV, adding some credibility to the speculation.
Huberty maintains a Buy rating and $410 price target on Apple.

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